defi ·
Circle asks SEC for stablecoin cash treatment and a zero haircut
Securities and Exchange Commission to recognize qualifying payment stablecoins as cash in its proposed crypto fundraising rules and cut their broker-dealer capital haircut from 2% to zero.
Circle’s October 28 blog outlined a comment letter filed on October 20, the consultation’s closing date. The USDC issuer supports Regulation Crypto Assets, while seeking explicit rules for stablecoin payments and settlement. In its letter, the company asks the SEC to coordinate the proposal with the GENIUS Act and permit only GENIUS-compliant payment stablecoins as consideration or settlement assets under the framework.
The filing separates the token being offered from the stablecoin used to pay for it. Accepting stablecoins, Circle argues, should not pull their issuers into the fundraising company’s obligations. For qualifying dollar tokens redeemable one-for-one, the requested valuation would use the corresponding dollar amount. Circle wants consistent treatment when payments count toward offering limits and when issuers rely on provisions for securities offered for cash.
